Join our email mailing list
|
1. AkzoNobel
Sales: $13.4 billion
Bigger, stronger, more focused
Akzo Nobel N.V.
Strawinskylaan 2555, P.O. Box 75730, 1070 AS
Amsterdam, the Netherlands
Tel: (31) 20 502 7555; Fax: (31) 20 502 7666
www.akzonobel.com
• 2007 SALES REVENUE:
$13.4 billion
(2006 SALES: $7.8 billion)
• KEY PERSONNEL:
Hans Wijers, CEO and board member responsible for coatings; Rinus Rooseboom, decorative coatings general manager; Bob Taylor, industrial finishes general manager; Rob Molenaar, powder coatings general manager; Bill McPherson, marine and protective coatings general manager; Jim Rees, car refinishes general manager
• MAJOR PRODUCTS:
The portfolio includes decorative paints; products for industrial applications including powder and specialty coatings; car refinishes; marine, protective and aerospace coatings; and coatings-related products such as wood and building adhesives.
• 2007 ACQUISITIONS:
Ceilcote business from German-based KCH Group; Chemcraft Holdings Corporation in the U.S.; UK-based Imperial Chemical Industries (ICI).
To say 2007 was an eventful year for AkzoNobel is an understatement. Active on all fronts, it truly was a transformative year for the coatings giant.
First the company announced that it would be relocating its head office from Arnhem in the Netherlands to the Dutch capital, Amsterdam, in summer 2007.
Next, it divested its pharmaceutical activities, Organon BioSciences, to Schering-Plough and acquired Imperial Chemical Industries (ICI) to create one of the world’s foremost industrial companies.
During the year AkzoNobel continued its march into emerging makets as well. Particlulay bullish on China, the company opened a decorative coatings facility in Langfang and Hans Wijers, CEO and chairman, announced new strategic targets for China including a revenue target of $2 billion by 2012.
Late in the year, it also finalized plans for new segments of the company effective in 2008. The integrated organization was set up to operate in three business areas—Decorative Paints, Performance Coatings and Specialty Chemicals.
Early in 2008, the company also launched a new corporate brand—Tomorrow’s Answers Today—along with a new logo.
Acquisition of ICI
AkzoNobel’s purchase of UK-based ICI was the major headline of the year in the coatings industry and further consolidated Akzo’s position as the world’s largest maker of paint and coatings. Already positioned as the largest global industrial coatings manufacturer, the company now also boasts it is number one in decorative paints as a result of the ICI deal, which gives it ownership of the popular Dulux and Glidden brands of decorative paints among others.
AkzoNobel purchased ICI for $16.2 billion. Pictured above from left to right is ICI CEO John McAdam and AkzoNobel CEO Hans Wijers. |
In addition to strengthening its leading position in the coatings industry with a market share of approximately 15%, the purchase of ICI significantly increases AkzoNobel’s exposure in North America and emerging markets, as well as in decorative coatings.
At the time of the deal, Wijers said, “This gives us a mega-leap of probably ten years in building our position in the emerging markets.” Roughly a third of ICI’s sales came from developing regions.
In addition, Wijers added, “It also gives us a number-two position in the largest coatings market in the world, which is the U.S.”
AkzoNobel bought ICI for approximately $16.2 billion and combined with ICI’s paint sales, boosted its paint and coatings revenue in 2007 to $13.4 billion from $7.8 billion the previous year (figures do not include the company’s specialty chemicals operations).
The Decorative Paints business unit—includes Decorative Europe, Decorative Americas and Decorative Asia segments—was respsonbile for for approximately $7.26 billion of the total revenue.
The Performance Coatings business unit—includes Industrial Activites, Marine and Protective Coatings, Car Refinishes and Packaging Coatings segments—accounted for approximately $6.16 billion.
Decorative Coatings
Under the Decorative Paints business unit, Decorative Europe posted sales of approximately $3.9 billion; Decorative Americas $2.4 billion; and Decorative Asia $917 million.
Across Europe the unit posted positive gains particularly in the UK, Nordics, Baltics and Russia. Centenary celebrations were held for the Balakom brand in the Czech Republic. In product news, the high solids Sikkens Rubbol XD range—introduced in the Netherlands in 2006—was rolled out in other European markets. In 2007 Akzo also launched a second generation dirt repellant exterior wall paint, Herbol Symbiotic, in Germany (other countries to follow in 2008).
In the U.S. Akzo has been busy integrating the Flood organization which it acquired in 2006 into its existing wood care activities and will look to create growth in the large-scale outlets segment moving forward.
This was also the first year Akzo reaped the benefits from the 2006 Sico acquisition in Canada. Of particular note, in 2007 Akzo launched the zero emission Sico Design line.
In Asia Pacific Akzo continues to develop business fragmented between China, Indonesia Vietnam and Papua New Guinea. In China, it opened a new facility for paint products in Langfang, which underlined its commitment to growing in Asia.
In South America there was strong development in the company’s wood care position in Argentina where it is the market leader with its Cetol brand.
Industrial Activities
The Industrial Activities segment of AkzoNobel’s Performance Coatings business unit accounted for approximately $2.7 billion in sales in 2007 and includes the company’s industrial finishes and powder coatings operations.
While the business faced tough challenges in North America due to the U.S. housing recession, it continued to invest and achieve growth in the emerging markets of China, Vietnam, India, Russia, the Nordics and Eastern Europe. In China construction began on another production facility in Tianjn.
In North America the company did finalize the acquisition of wood coatings manufacturer Chemcraft. Not only did this deal broaden and strengthen the company’s industrial wood coatings portfolio, but gives it access to Chemcraft’s distribution areas in North America where it previously lacked a significant presence.
Akzo’s powder coatings business, which is the largest in the world delivered solid results in 2007 and was active particularly on the expansion front, relocating with its customers to Eastern Europe and following the migration of the U.S. industry base to China. The company inaugurated a factory in Moscow, expanded facilities in the Czech Republic, increased capacity in Turkey and opened a facility in Dubai. The powder business also opened a factory in Chengdu in central China.
Grant Russell (right), International Paint’s Marine & Protective Coatings market director is shown with the secretary of the Queen’s Award Office at the Winner’s Celebration on April 24, 2007 at the Gladstone Library, London. |
Marine & Protective Coatings
The Marine and Protective Coatings segment reported sales of approximately $1.7 billion in 2007 and includes AkzoNobel’s Aerospace Coatings activities. For the third year in a row the segment achieved double-digit growth revenue.
Of particular note, during 2007 AkzoNobel’s Intersleek 700 antifouling coating received the UK’s prestigious Queen’s Award for Enterprise in the Innovation category. The company also opened a new R&D facility at Felling in the UK and marked the centenary of U.S. operations. Another key event was the acquisition of the Ceilcote business in the U.S. In addition, towards the end of the year Akzo’s marine and protective coatings business completed the construction of a new protective coatings plant at Suzhou in China.
Car Refinishes
AkzoNobel’s Car Refinishes segment posted sales of approximately $1.2 billion in 2007 and experienced growth in all regions except its commercial vehicles activities in North America. Last year resulted in a record number of aftermarket approvals with car makers worldwide including Toyota, GM, Ford, Hyundai and Skoda. The refinish business also opened a number of new facilities, including a polymer research center in Sassenheim, the Netherlands. In addition, it installed a new automatic dispensing unit at Pontiac, MI, which allowed it to complete the closure of its North Bruch plant. The company was busy in India as well, doubling the size of its research facility in Bangalore.
|
|
